Turkey: Trade deficit widens by 157% year-on-year in May to reach $10.7 billion

According to the leading May foreign trade data announced by the Ministry of Commerce within the scope of GTS (general trade system); Compared to the same month of the previous year, exports increased by 15.2% to 18.97 billion USD, while imports increased by 43.8% to 29.65 billion USD in the same period. In this context, foreign trade deficit increased by 157% in May and reached 10.68 billion USD.

In May, Germany was the country to which we exported the most, followed by the US, Iraq and Italy. In import items; Russia took the first place in May 2022, followed by China, Germany and the US. Looking at the goods groups, raw material (intermediate goods), investment (capital) and consumption increased compared to the previous year. On the import side, despite the 52.4% increase due to commodity prices in the raw material category; investment goods increased by 10.8%, while consumption goods increased by 22.3%.

Energy imports amounted to $6.95 billion in May, accounting for 23.4% of total imports alone. Compared to May of last year, energy imports increased by 124.6%. In the 5-month period, total energy imports were 39.7 billion, which corresponds to an increase of 163.4% compared to the January-May period of the previous year. The increasing effect of the high commodity prices on the import side continues to be at the forefront.

In terms of export profile, the balance created by the economic effects of the Russia-Ukraine war on foreign demand increases downside risks. This situation not only expands imports through energy and commodity prices, but also reduces the export potential as it causes an economic slowdown in our main export markets. As seen in the PMI data, decreasing export orders had an impact on domestic industrial activity. The potential for recession in European economies in the coming period may cause a slowdown in our exports.

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